36 International Financing Review Asia April 4 2020› ADANI-TOTAL LNG LOAN DRAWS 11India’s Adani Group and French oil and
gas giant TOTAL have closed a US$600m
five-year loan for a liquefied natural gas
regasification terminal project in India.
Eleven banks joined in general
syndication, bringing the total number of
lenders participating in the deal to 19.
BNP Paribas, DBS Bank, Intesa Sanpaolo
and Standard Chartered Bank were themandated lead arrangers, bookrunners and
underwriters on the deal. Sumitomo Mitsui
Banking Corp joined as MLAB, while CTBC
Bank, DZ Bank and Korea Development Bank
as MLAs before the launch into general
syndication.
Proceeds fund the development of a
regasification terminal at Dhamra in
India’s Odisha state by a 50:50 joint venture
between the two sponsors.
Total is guarantor on facility A, whileADANI PORTS & SPECIAL ECONOMIC ZONE is
guaranteeing Facility B.
The loan offered a top level all-in pricing
of 143.8bp based on a blended interest
margin of 130bp over Libor and a blended
average life of 3.8 years.
Indian state-owned oil and gas companies
GAIL India and Indian Oil Corp have signed
20-year contracts totalling 4.5 MTPA for
regasification services at Dhamra on a use-
or-pay basis.
For full allocations, see http://www.ifre.com.India misses 2019-20 divestment target
Equities Record Rs2.1trn target for 2020-21 looks difficult to achieveIndia has missed its disinvestment target for
the fiscal year 2019-20 for the first time in
four years, and on current market trends the
Rs2.1trn (US$28bn) target for 2020-21 looks
just as difficult to achieve.
Department of Investment and Public
Asset Management data show the
government raised Rs503bn through the
sale of stakes in state-owned companies in
the year to March 31, missing its downsized
target of Rs650bn, after capital market
activities slowed down in the latest quarter.
The target had already been cut from an
initial Rs1.05trn.
Share sales, including privatisations, have
come to a near halt with the coronavirus
pandemic and a 21-day nationwide lockdown
in India from March 25.
In the final quarter of the financial year, the
government was unable to launch as planned
the Rs40bn IPO of INDIAN RAILWAY FINANCE CORP
and sell-downs in AXIS BANK and ITC.LIC IPO CHALLENGE
Bankers said the government has stopped
inter-ministerial consultations and meetingswith market intermediaries on share sales.
“Instead we have been asked for suggestions
on how to provide relief to market participants
and companies in the current situation,” a
Mumbai-based banker said.
India plans to raise Rs1.2trn through the
sale of stakes in state-owned companies
in 2020-2021 and Rs900bn from share
sales in banks and financial institutions. The
latter includes an up to Rs90bn IPO of LIFE
INSURANCE CORPORATION OF INDIA later this year.
“IPOs especially large ones like LIC look
very difficult at this stage. The markets have
to revive and remain bullish for a sustained
period for a landmark deal like this to
materialise,” another ECM banker said. The
benchmark S&P BSE Sensex is down 31%
year to date.
Other big-ticket transactions include
strategic stake sales in AIR INDIA and BHARAT
PETROLEUM.
“Such transactions involve regular
meetings with bureaucrats and site visits to
companies. All this is impossible for some
more months,” the banker said.
DIPAM has already extended the deadlinefor expressions of interest for a 52.98% stake
in Bharat Petroleum to June 13 from May 2.
Selling off shares in Air India, a challenging
task at the best of times, looks even more
problematic now that the coronavirus has
grounded much of global air travel. Air India
suspended all its domestic and international
flights last week until April 14.
Capital market transactions in 2020-21
include offers for sale in GENERAL INSURANCE
CORPORATION OF INDIA, NEW INDIA ASSURANCE,
HINDUSTAN AERONAUTICS, BHARAT DYNAMICS and
BHARAT ELECTRONICS. The size of each deal will
depend on the share price at the time of the
transaction.
Among the last state divestments in 2019-
20 was thermal power developer NTPC’s
purchase of the government’s 74.49% stake
in THDC India for Rs75bn and a 100% stake
in North Eastern Electric Power Corp for
Rs40bn. Both transactions were completed
on March 27.
The last capital market transaction of the
financial year was a Rs7.3bn offer for sale in
engineering consultancy Rites in November.
ANURADHA SUBRAMANYANTop bookrunners of India syndicated loans
1/1/20 – 31/3/20
Amount
Name Deals US$(m) %
1 State Bank of India 6 897.3 17.3
2 ICICI Bank 8 761.0 14.7
3 Indusind-Bank 4 644.8 12.4
4 SMFG 5 436.3 8.4
5 Axis 2 349.4 6.7
6 Standard Chartered 4 275.2 5.3
7 L&T Financial Services 3 266.6 5.1
8 Bank of Baroda 2 242.1 4.7
9 HSBC 2 240.8 4.6
10 Citigroup 2 213.5 4.1
Total 25 5,189.7
* Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S10bTop lead managers of Indian rupee bonds
1/1/20 – 31/3/20
Amount
Name Issues Rs(m) %
1 Axis 43 259,481.5 21.9
2 ICICI Bank 44 169,461.3 14.3
3 HDFC 39 123,059.3 10.4
4 Trust Group 37 120,316.7 10.1
5 AK Capital 32 83,716.4 7.1
6 Punjab National Bank 32 83,063.8 7.0
7 Edelweiss Financial 7 47,630.6 4.0
8 Kotak Mahindra 18 47,377.6 4.0
9 State Bank of India 16 44,339.5 3.7
10 Tipsons 18 39,906.9 3.4
Total 82 1,186,541.4
*Market volume
Proportional credit
Source: Refinitiv data SDC Code: AS23India equity and equity-related
1/1/20 – 31/3/20
Amount
Name Issues US$(m) %
1 Bofa Sec 4 861.8 14.5
2 Axis 4 632.3 10.6
3 HSBC 3 569.4 9.6
4 JP Morgan 3 536.2 9.0
5* BNP Paribas 2 454.1 7.6
5* Citigroup 2 454.1 7.6
5* Goldman Sachs 2 454.1 7.6
8 ICICI Bank 2 320.2 5.4
9 Kotak Mahindra 2 315.3 5.3
10 Motilal Oswal Financial 1 255.1 4.3
Total 26 5,940.7Source: Refinitiv data SDC Code: C1LB&RXQWU\LQGG